Rolls-Royce Holdings Plc (LSE:RR.) reaffirmed its full-year 2025 guidance on Thursday, citing strong trading through October and sustained demand across its Civil Aerospace and Power Systems divisions, as well as steady progress in Defence.
The aero-engine manufacturer said group performance remained aligned with its expectations, leaving it on course to deliver an underlying operating profit of £3.1–£3.2 billion and free cash flow of £3–£3.1 billion for the year.
“Strong performance across the Group, driven by our actions and strategic initiatives, was in line with our expectations,” chief executive Tufan Erginbilgic said. “This builds further confidence in our Full Year 2025 guidance … despite continued supply chain challenges.”
Civil Aerospace continued to be a major driver of growth, supported by notable large-engine orders from IndiGo, Malaysia Airlines, and Avolon in the second half of the year. Rolls-Royce reported rising interest in its Trent XWB-97 engine for the Airbus A350F, particularly among customers in Greater China and the broader Asia-Pacific region, including Air China Cargo and Korean Air.
Large-engine flying hours increased 8% year on year in the 10 months to Oct. 31, reaching 109% of 2019 levels. Airbus recognised the company’s operational performance with a supplier award in the “Ramp up and Operational Excellence” category — marking the first time an engine manufacturer has achieved this distinction.
Rolls-Royce also highlighted the impact of its upgraded Trent 1000 high-pressure turbine blade, certified in June, which has more than doubled time on wing and is now being incorporated into both new engines and those undergoing maintenance. Further durability upgrades for the Trent 1000 and Trent 7000 remain on track for certification by the end of 2025 and are expected to extend time on wing by around 30%.
In business aviation, the first Gulfstream G800 powered by the Pearl 700 engine entered service in August, with the engine performing “seamlessly in service.”
Defence operations also remained robust. The Global Combat Air Programme deepened its partnership in September to accelerate power and propulsion system development, and Rolls-Royce conducted tests of a new combustor built using additive layer manufacturing to enhance efficiency. The company also noted an October agreement between Türkiye and the United Kingdom to export 20 Eurofighter Typhoon jets, powered by its EJ200 engines.
Rolls-Royce said its work on Project Pele — a U.S. initiative to develop a transportable microreactor — is advancing as planned. It continues to expand its nuclear-energy collaborations in the U.S., where Defence may become one of the first application areas.
In Power Systems, both order intake and revenue strengthened, driven by robust demand from data centre operators and government customers. Development of the next-generation engine for the data-centre backup market is progressing, with multiple units undergoing parallel testing ahead of a planned 2028 entry into service. The company also introduced a new fast-start gas generator in October, scheduled for availability in 2026, aimed at customers awaiting grid connections.
During the period, Rolls-Royce successfully tested the first 100% methanol high-speed marine engine, describing it as an important step toward carbon-neutral propulsion.
Its Small Modular Reactor (SMR) business advanced to the final stage of Sweden’s technology selection process and continued progress in the U.K. after being chosen as the preferred technology supplier by Great British Energy-Nuclear in June. Commercial terms for the U.K. agreement are expected to be finalised later this year, and the SMR division has now entered the U.S. regulatory review process.
The company said its operational simplification efforts under the Group Business Services programme continue, supported by the launch of a new global capability and innovation centre in Bengaluru, India. Rolls-Royce also noted further balance sheet strengthening: it increased cash generation, repaid a $1 billion bond maturing in October, and completed £0.9 billion of its £1 billion share buyback programme by the end of the month.
Leave a Reply